India OKs Reliance-Disney Mega-Merger with Conditions, Including Sale of TV Channels

The Competition Commission of India (CCI) has officially cleared the highly anticipated merger of media assets between Reliance Industries and Walt Disney, according to a detailed 48-page order released on Tuesday. The approval, which entails several conditions, allows the companies to move forward with the creation of India’s largest media and entertainment entity. However, the clearance came with significant stipulations, including the sale of seven TV channels and restrictions on how the companies can sell advertising slots for major cricket events.

As part of the merger conditions, Reliance and Disney have agreed to divest seven television channels, including popular children’s networks Hungama and Super Hungama. According to Deccan Herald, this move is part of the parties’ voluntary commitment to address competition concerns and avoid excessive market dominance in the Indian media landscape.

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In addition to the channel divestments, the companies have agreed not to bundle advertising slots for key cricketing properties—namely, the Indian Premier League (IPL), International Cricket Council (ICC), and Board of Control for Cricket in India (BCCI) rights—until the expiration of the current broadcasting agreements. This restriction applies to both TV and digital streaming platforms, as noted in the CCI order. Per Deccan Herald, this measure is intended to ensure fair competition and prevent an excessive hike in advertising rates during these highly lucrative sporting events.

Moreover, the companies provided assurances that they would not increase ad rates to unreasonable levels on their TV and digital platforms for ICC and IPL events during the period of the existing contracts. These commitments were crucial in securing the CCI’s approval for the merger, which had initially raised concerns about market concentration in both television and digital content markets.

The merger, which was originally filed for approval three months ago, was granted clearance by the CCI in August, subject to compliance with these voluntary modifications. With Reliance set to hold a 56% stake in the newly merged entity, Walt Disney will retain a 37% share, while Bodhi Tree Systems will own the remaining 7%.

Source: Deccan Herald